Diluted net income per share for the fourth quarter was $1.40 in 2016 and $0.91 in 2015. The comparison benefited from cost savings and a charge in 2015 related to deconsolidating the company's Venezuelan business at the end of 2015.

Full-year diluted net income per share was $5.99 in 2016 and $2.77 in 2015.

Fourth quarter adjusted earnings per share were $1.45 in 2016 and $1.42 in 2015. Adjusted earnings per share exclude certain items described later in this news release.

Full-year adjusted earnings per share were $6.03 in 2016, up 5 percent compared to $5.76 in 2015. The company's previous guidance for adjusted earnings per share was $5.95 to $6.05.

Net sales in 2017 are expected to be similar to 2016, including organic sales growth of approximately 2 percent. Diluted net income per share for 2017 is anticipated to be $6.20 to $6.35.

The company's Board of Directors has approved a 5.4 percent increase in the quarterly dividend, taking the dividend to 97 cents per share, up from 92 cents per share in 2016. This is the 45th consecutive annual increase in the company's dividend. The dividend will be payable on April 4, 2017, to stockholders of record on March 10, 2017.

Chairman and Chief Executive Officer Thomas J. Falk said, "Our full-year results were consistent with our previous outlook. While we experienced a challenging economic and competitive environment in 2016, our market share positions remained broadly healthy. We also achieved record cost savings, which helped us improve our margins and deliver bottom-line earnings in line with our guidance for the year. In addition, we generated strong cash flow and returned $2.1 billion to shareholders through dividends and share repurchases."

Falk added, "Looking to 2017, we will execute our Global Business Plan strategies in what we expect will be a continued difficult environment. Our teams will invest in innovation, marketing and targeted growth initiatives to keep our brands strong and help us compete effectively. We will also continue to manage our company with financial discipline, with a focus on cost savings, cash flow and shareholder-friendly capital allocation. We remain optimistic about our opportunities to create long-term shareholder value."

Fourth Quarter 2016 Operating Results

Sales of $4.5 billion in the fourth quarter of 2016 were even with the year-ago period. Organic sales were up 1 percent, as volumes increased 2 percent, while the combined impact of changes in net selling prices and product mix reduced sales by 1 percent. Changes in foreign currency exchange rates lowered sales 1 percent.

Fourth quarter operating profit was $839 million in 2016 and $630 million in 2015. Results in 2015 included $108 million of charges for the Venezuelan deconsolidation. Adjusted operating profit of $859 million in the fourth quarter of 2016 increased 10 percent compared to $779 million in the year-ago period. Items excluded from adjusted operating profit are described later in this release.

The fourth quarter effective tax rate was 35.7 percent in 2016 compared to 45.1 percent in 2015, which included the impact of a $49 million charge as a result of an updated assessment of uncertain tax positions. The fourth quarter adjusted effective tax rate was 35.4 percent in 2016 and 30.6 percent in 2015. The full-year 2016 effective tax rate and adjusted effective tax rate of 30.6 percent and 30.7 percent, respectively, were both relatively consistent with the company's previous estimate for a rate approximately at the low end of the 30.5 to 32.5 percent range.

Kimberly-Clark's share of net income of equity companies in the fourth quarter was $29 million in 2016 and $37 million in 2015. At Kimberly-Clark de Mexico, results were impacted by a weaker Mexican peso and higher input costs, partially offset by benefits from organic sales growth and cost savings.

Cash Flow and Balance Sheet

Cash provided by operations in the fourth quarter of 2016 was $871 million, up 31 percent versus $665 million in the year-ago period. Full-year cash provided by operations was $3,232 million in 2016, an increase of 40 percent compared to $2,306 million in 2015. The increase was driven by improved working capital and lower pension contributions. Full-year defined benefit pension plan contributions were $108 million in 2016 and $485 million in 2015.

Capital spending for the fourth quarter was $189 million in 2016 and $258 million in 2015. Full-year spending was $771 million in 2016 and $1,056 million in 2015. Fourth quarter 2016 share repurchases were 1.9 million shares at a cost of $225 million, bringing full-year repurchases to 6.0 million shares at a cost of $750 million. Total debt was $7.6 billion at the end of 2016 and $7.8 billion at the end of 2015.

Sales in North America increased 1 percent. Volumes were up 2 percent, while net selling prices were off 1 percent. Child care and adult volumes each rose high-single digits, with benefits from category growth and innovations launched in the last 12 months. Baby wipes volumes increased mid-single digits and market shares improved. Huggies diaper volumes were down high-single digits compared to mid-single digit growth in the year-ago period, as comparisons were impacted by the timing of promotion shipments and lower category demand.

Sales in developing and emerging markets increased approximately 1 percent despite a 4 point drag from unfavorable currency rates. Volumes increased 5 percent, while the combined impact of changes in net selling prices and product mix reduced sales 1 percent. The volume increase included gains in China, Eastern Europe and Central America, while volumes declined in Argentina and Brazil. Net selling prices increased in Latin America, primarily in Argentina, but decreased in China.

Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 1 percent due to favorable currency rates.

Sales in North America were essentially even with year-ago levels. Volumes were up slightly year-on-year, including an increase in paper towels, compared to 8 percent growth in the base period. Net selling prices were down slightly.

Sales in developed markets outside North America were down 3 percent, including a 2 point negative impact from changes in currency rates. Net selling prices fell 2 percent, while product mix improved 1 percent.

Operating profit was $3,317 million in 2016 versus $1,613 million in 2015. Results in 2015 included $1,358 million of pension settlement charges and $153 million of charges related to the company's Venezuelan operations. Adjusted operating profit of $3,341 million in 2016 increased 4 percent compared to $3,210 million in 2015. Results in 2016 included benefits from organic sales growth, $435 million of FORCE cost savings and $70 million of savings from the 2014 Organization Restructuring. In addition, input costs were $65 million lower. Translation effects due to changes in foreign currency exchange rates lowered operating profit by $90 million and transaction effects also negatively impacted results.

Diluted net income per share was $5.99 in 2016 and $2.77 in 2015. Adjusted earnings per share of $6.03 in 2016 increased 5 percent versus $5.76 in 2015.

2014 Organization Restructuring

In October 2014, Kimberly-Clark initiated a restructuring program in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of the company's health care business. The restructuring was intended to improve underlying profitability and increase flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth.

Charges for the restructuring were completed at the end of 2016, as expected. Total costs were $164 million after tax ($231 million pre-tax) compared to the original estimate of $130 to $160 million after tax ($190 to $230 million pre-tax). The company achieved its total restructuring savings objective one year ahead of target, as annualized pre-tax savings from the restructuring amounted to $140 million through the end of 2016 compared to the original estimate for savings of $120 to $140 million by the end of 2017.

2017 Outlook and Key Planning Assumptions

The company's key planning and guidance assumptions for 2017 are as follows:

Net sales similar to the prior year.

Organic sales growth of approximately 2 percent, driven by higher volumes. Net selling prices and product mix expected to be similar, or up slightly, year-on-year.

Impact of changes in key cost inputs between $50 and $200 million of inflation, primarily due to inflation in international markets. The company is assuming North American market prices of $830 to $850 per metric ton for eucalyptus pulp and $50 to $60 per barrel for oil.

This press release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures:

Adjusted earnings and earnings per share

Adjusted gross and operating profit

Adjusted other (income) and expense, net

Adjusted effective tax rate

These non-GAAP financial measures exclude the following items for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:

2014 Organization Restructuring. See previous discussion in this news release.

Venezuelan operations. In the first quarter of 2015, following the Venezuelan government's elimination of the SICAD II exchange rate, the company recorded a charge for remeasuring the local currency balance sheet in Venezuela at the SIMADI floating exchange rate. In the fourth quarter of 2015, the company recorded a charge related to deconsolidating the company's Venezuelan business at the end of 2015. In the second quarter of 2016, the company recorded a modest amount of income related to an updated assessment of the impact of the deconsolidation.

Pension settlement charges. In 2015, the company started to offer a lump-sum pension benefit payout option for certain plan participants. In addition, Kimberly-Clark purchased group annuity contracts that transferred to two insurance companies the pension benefit obligations for certain Kimberly-Clark retirees. As a result, the company recognized pension settlement charges in 2015, mostly in the second quarter.

Uncertain tax positions. In the fourth quarter of 2015, the company recognized a charge, related to prior years, as a result of an updated assessment of uncertain tax positions for certain international operations.

Turkey Restructuring. In 2015, the company initiated actions to restructure its business in Turkey, including the closing of a manufacturing facility.

The company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the company's Board of Directors use adjusted earnings, adjusted earnings per share and adjusted gross and operating profit to (a) evaluate the company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.

Additionally, the Management Development and Compensation Committee of the company's Board of Directors has used certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the company's adjusted earnings per share and improvement in the company's adjusted return on invested capital and adjusted operating profit return on sales determined by excluding certain of the charges that are used in calculating these non-GAAP financial measures.

This news release includes information regarding organic sales growth, which describes the impact of changes in volume, net selling prices and product mix on net sales. Changes in foreign currency exchange rates also impact the year-over-year change in net sales.

Conference Call

A conference call to discuss this news release and other matters of interest to investors and analysts will be held at 9 a.m. (CST) today. The conference call will be simultaneously broadcast over the World Wide Web. Stockholders and others are invited to listen to the live broadcast or a playback, which can be accessed by following the instructions set out in the Investors section of the company's Web site (www.kimberly-clark.com).

About Kimberly-Clark

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 175 countries. Every day, nearly a quarter of the world's population trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No. 2 share positions in 80 countries. To keep up with the latest K-C news and to learn more about the company's 145-year history of innovation, visit www.kimberly-clark.com.

Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's Web site on the same day they are filed with the SEC. To view these filings, visit the Investors section of the company's Web site.

Certain matters contained in this news release concerning the outlook, anticipated financial and operating results, raw material, energy and other input costs, anticipated currency rates and exchange risks, net income from equity companies, sources and uses of cash, the effective tax rate, the anticipated cost savings from the company's FORCE program, growth initiatives, contingencies and anticipated transactions of the company constitute forward-looking statements and are based upon management's expectations and beliefs concerning future events impacting the company. There can be no assurance that these future events will occur as anticipated or that the company's results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them. For a description of certain factors, such as currency rates and
exchange risks, cost savings and reductions, raw material, energy and other input costs, competition, market demand and economic and political conditions, that could cause the company's future results to differ from those expressed in any such forward-looking statements, see Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2015 entitled "Risk Factors."

KIMBERLY-CLARK CORPORATION

CONSOLIDATED INCOME STATEMENT

(Millions, except per share amounts)

Three Months EndedDecember 31

2016

2015

Change

Net Sales

$

4,544

$

4,539

+0.1

%

Cost of products sold

2,866

2,913

-1.6

%

Gross Profit

1,678

1,626

+3.2

%

Marketing, research and general expenses

821

857

-4.2

%

Other (income) and expense, net

18

139

-87.1

%

Operating Profit

839

630

+33.2

%

Interest income

2

5

-60.0

%

Interest expense

(81)

(76)

+6.6

%

Income Before Income Taxes and Equity Interests

760

559

+36.0

%

Provision for income taxes

(271)

(252)

+7.5

%

Income Before Equity Interests

489

307

+59.3

%

Share of net income of equity companies

29

37

-21.6

%

Net Income

518

344

+50.6

%

Net income attributable to noncontrolling interests

(13)

(11)

+18.2

%

Net Income Attributable to Kimberly-Clark Corporation

$

505

$

333

+51.7

%

Per Share Basis

Net Income Attributable to Kimberly-Clark Corporation

Basic

$

1.41

$

0.92

+53.3

%

Diluted

$

1.40

$

0.91

+53.8

%

Cash Dividends Declared

$

0.92

$

0.88

+4.5

%

Common shares outstanding

December 31

2016

2015

Outstanding shares as of

356.6

360.9

Average diluted shares for three months ended

359.6

364.5

Unaudited

KIMBERLY-CLARK CORPORATION

CONSOLIDATED INCOME STATEMENT

(Millions, except per share amounts)

Twelve Months EndedDecember 31

2016

2015

Change

Net Sales

$

18,202

$

18,591

-2.1

%

Cost of products sold

11,551

11,967

-3.5

%

Gross Profit

6,651

6,624

+0.4

%

Marketing, research and general expenses

3,326

3,443

-3.4

%

Other (income) and expense, net

8

1,568

-99.5

%

Operating Profit

3,317

1,613

+105.6

%

Interest income

11

17

-35.3

%

Interest expense

(319)

(295)

+8.1

%

Income Before Income Taxes and Equity Interests

3,009

1,335

+125.4

%

Provision for income taxes

(922)

(418)

+120.6

%

Income Before Equity Interests

2,087

917

+127.6

%

Share of net income of equity companies

132

149

-11.4

%

Net Income

2,219

1,066

+108.2

%

Net income attributable to noncontrolling interests

(53)

(53)

—

Net Income Attributable to Kimberly-Clark Corporation

$

2,166

$

1,013

+113.8

%

Per Share Basis

Net Income Attributable to Kimberly-Clark Corporation

Basic

$

6.03

$

2.78

+116.9

%

Diluted

$

5.99

$

2.77

+116.2

%

Cash Dividends Declared

$

3.68

$

3.52

+4.5

%

Common shares outstanding

December 31

2016

2015

Average diluted shares for twelve months ended

361.7

366.3

2016 Data is Unaudited

KIMBERLY-CLARK CORPORATION

NON-GAAP RECONCILIATIONS

(Millions, except per share amounts)

Three Months Ended December 31, 2016

AsReported

Charges for 2014OrganizationRestructuring

AsAdjustedNon-GAAP

Cost of products sold

$

2,866

$

3

$

2,863

Gross profit

1,678

(3)

1,681

Marketing, research and general expenses

821

17

804

Operating profit

839

(20)

859

Income before income taxes and equity interests

760

(20)

780

Provision for income taxes

(271)

5

(276)

Effective tax rate

35.7

%

—

35.4

%

Net income attributable to Kimberly-Clark Corporation

505

(15)

520

Diluted earnings per share(a)

1.40

(0.04)

1.45

Three Months Ended December 31, 2015

As Reported

ChargesRelated to Venezuelan Operations

UncertainTax PositionsAdjustment

Chargesfor Pension Settlements

Charges for 2014 Organization Restructuring

Charges forTurkeyRestructuring

As AdjustedNon-GAAP

Cost of products sold

$

2,913

$

—

$

—

$

—

$

4

$

6

$

2,903

Gross profit

1,626

—

—

—

(4)

(6)

1,636

Marketing, research and

general expenses

857

—

—

—

23

—

834

Other (income) and expense,

net

139

108

—

8

—

—

23

Operating profit

630

(108)

—

(8)

(27)

(6)

779

Income before income taxes

and equity interests

559

(108)

—

(8)

(27)

(6)

708

Provision for income taxes

(252)

6

(49)

3

5

—

(217)

Effective tax rate

45.1

%

—

—

—

—

—

30.6

%

Net income attributable to

Kimberly-Clark Corporation

333

(102)

(49)

(5)

(22)

(6)

517

Diluted earnings per share(a)

0.91

(0.28)

(0.13)

(0.01)

(0.06)

(0.02)

1.42

(a) "As Adjusted Non-GAAP" does not equal "As Reported" plus "Charges" as a result of rounding.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. The company compensates for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures.

Unaudited

KIMBERLY-CLARK CORPORATION

NON-GAAP RECONCILIATIONS

(Millions, except per share amounts)

Twelve Months Ended December 31, 2016

AsReported

Charges for2014 OrganizationRestructuring

AdjustmentRelated to VenezuelanOperations

AsAdjustedNon-GAAP

Cost of products sold

$

11,551

$

6

$

—

$

11,545

Gross profit

6,651

(6)

—

6,657

Marketing, research and general expenses

3,326

32

—

3,294

Other (income) and expense, net

8

(3)

(11)

22

Operating profit

3,317

(35)

11

3,341

Income before income taxes and equity interests

3,009

(35)

11

3,033

Provision for income taxes

(922)

8

—

(930)

Effective tax rate

30.6

%

—

—

30.7

%

Net income attributable to Kimberly-Clark Corporation

2,166

(27)

11

2,182

Diluted earnings per share

5.99

(0.07)

0.03

6.03

Twelve Months Ended December 31, 2015

AsReported

ChargesRelated to VenezuelanOperations

UncertainTaxPositionsAdjustment

Chargesfor PensionSettlements

Charges for2014OrganizationRestructuring

Charges forTurkeyRestructuring

AsAdjustedNon-GAAP

Cost of products sold

$

11,967

$

5

$

—

$

—

$

23

$

22

$

11,917

Gross profit

6,624

(5)

—

—

(23)

(22)

6,674

Marketing, research and

general expenses

3,443

—

—

—

40

1

3,402

Other (income) and expense,

net

1,568

148

—

1,358

—

—

62

Operating profit

1,613

(153)

—

(1,358)

(63)

(23)

3,210

Income before income taxes

and equity interests

1,335

(153)

—

(1,358)

(63)

(23)

2,932

Provision for income taxes

(418)

6

(49)

523

21

—

(919)

Effective tax rate

31.3

%

—

—

—

—

—

31.3

%

Net income attributable to

Kimberly-Clark Corporation

1,013

(147)

(49)

(835)

(42)

(23)

2,109

Diluted earnings per share(a)

2.77

(0.40)

(0.13)

(2.28)

(0.11)

(0.06)

5.76

(a) "As Adjusted Non-GAAP" does not equal "As Reported" plus "Charges" as a result of rounding.

Unaudited

KIMBERLY-CLARK CORPORATION

CONSOLIDATED BALANCE SHEET

(Millions)

December 31

2016

2015

ASSETS

Current Assets

Cash and cash equivalents

$

923

$

619

Accounts receivable, net

2,176

2,281

Inventories

1,679

1,909

Other current assets

337

617

Total Current Assets

5,115

5,426

Property, Plant and Equipment, Net

7,169

7,104

Investments in Equity Companies

257

247

Goodwill

1,480

1,446

Other Assets

581

619

TOTAL ASSETS

$

14,602

$

14,842

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Debt payable within one year

$

1,133

$

1,669

Trade accounts payable

2,609

2,612

Accrued expenses

1,775

1,750

Dividends payable

329

318

Total Current Liabilities

5,846

6,349

Long-Term Debt

6,439

6,106

Noncurrent Employee Benefits

1,301

1,137

Deferred Income Taxes

532

766

Other Liabilities

309

380

Redeemable Preferred Securities of Subsidiaries

58

64

Stockholders' Equity (Deficit)

Kimberly-Clark Corporation

(102)

(174)

Noncontrolling Interests

219

214

Total Stockholders' Equity

117

40

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

14,602

$

14,842

2016 Data is Unaudited

KIMBERLY-CLARK CORPORATION

CONSOLIDATED CASH FLOW STATEMENT

(Millions)

Three Months EndedDecember 31

Twelve Months EndedDecember 31

2016

2015

2016

2015

Operating Activities

Net income

$

518

$

344

$

2,219

$

1,066

Depreciation and amortization

177

181

705

746

Stock-based compensation

13

7

77

75

Deferred income taxes

(2)

123

(15)

(255)

Equity companies' earnings (in excess of) less than dividends paid

27

28

(4)

(10)

Decrease (increase) in operating working capital

185

(129)

334

(445)

Postretirement benefits

(54)

(11)

(50)

930

Adjustments related to Venezuelan operations

—

108

(11)

153

Other

7

14

(23)

46

Cash Provided by Operations

871

665

3,232

2,306

Investing Activities

Capital spending

(189)

(258)

(771)

(1,056)

Proceeds from sales of investments

—

—

28

—

Investments in time deposits

(88)

(46)

(221)

(146)

Maturities of time deposits

124

64

188

164

Other

(3)

13

44

(12)

Cash Used for Investing

(156)

(227)

(732)

(1,050)

Financing Activities

Cash dividends paid

(330)

(320)

(1,311)

(1,272)

Change in short-term debt

(71)

412

(908)

303

Debt proceeds

3

3

1,293

1,100

Debt repayments

(2)

(204)

(598)

(553)

Proceeds from exercise of stock options

10

38

107

140

Acquisitions of common stock for the treasury

(227)

(358)

(739)

(861)

Shares purchased from noncontrolling interest

—

—

—

(151)

Other

(31)

(10)

(29)

(4)

Cash Used for Financing

(648)

(439)

(2,185)

(1,298)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(28)

(23)

(11)

(128)

Increase (Decrease) in Cash and Cash Equivalents

39

(24)

304

(170)

Cash and Cash Equivalents - Beginning of Period

884

643

619

789

Cash and Cash Equivalents - End of Period

$

923

$

619

$

923

$

619

Unaudited

KIMBERLY-CLARK CORPORATION

SELECTED BUSINESS SEGMENT DATA

(Millions)

Three Months Ended December 31

Twelve Months EndedDecember 31

2016

2015

Change

2016

2015

Change

NET SALES

Personal Care

$

2,248

$

2,233

+0.7

%

$

9,046

$

9,204

-1.7

%

Consumer Tissue

1,505

1,520

-1.0

%

5,967

6,121

-2.5

%

K-C Professional

779

776

+0.4

%

3,150

3,219

-2.1

%

Corporate & Other

12

10

N.M.

39

47

N.M.

TOTAL NET SALES

$

4,544

$

4,539

+0.1

%

$

18,202

$

18,591

-2.1

%

OPERATING PROFIT

Personal Care

$

495

$

473

+4.7

%

$

1,857

$

1,885

-1.5

%

Consumer Tissue

295

262

+12.6

%

1,117

1,073

+4.1

%

K-C Professional

146

157

-7.0

%

603

590

+2.2

%

Corporate & Other(a)

(79)

(123)

N.M.

(252)

(367)

N.M.

Other (income) and expense, net(a)

18

139

-87.1

%

8

1,568

-99.5

%

TOTAL OPERATING PROFIT

$

839

$

630

+33.2

%

$

3,317

$

1,613

+105.6

%

(a)

Segment Operating Profit excludes other (income) and expense, net and expenses not associated with the business segments, including charges as indicated in the Non-GAAP Reconciliations.